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MicroStrategy HODLing its Bitcoin for the foreseeable future

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microstrategy
  • Despite the crypto market crash, MicroStrategy CEO Michael Saylor remains bullish on bitcoin and hints at the company’s HODL strategy.

Saylor referenced his tweet from a month ago regarding MicroStrategy’s $205 million term loan against bitcoin on Tuesday. He noted that the company is obligated to provide $410 million in collateral and that they can offer 115,109 BTC as security. Saylor also emphasised that if the price of BTC falls below $3,562, the company will be required to pledge other assets, suggesting a potential liquidity problem.

Saylor implied that his company has no intention of selling its BTC. He determined that Microstrategy will continue to HODL through the duration of the bear market. Saylor added that the company understood the volatile nature of cryptocurrencies prior to adopting a bitcoin strategy as its investment model, and that they “anticipated volatility and structured its balance sheet accordingly.”